Mixin Network Suspends Deposits and Withdrawals After $200 Million Hack

Mixin Network, a Decentralized Exchange (DEX) marketed as being lightning-fast, has halted deposits and withdrawals. Mixin is currently grappling with a significant threat to over $200 million worth of crypto assets in its possession.

Mixin Network is a major player in the crypto Exchange space, and it is known for its endorsement by the prominent Chinese influencer Li Xiaolai. It boasts a combined network asset value of over $1 billion and supports 48 public blockchain networks. According to its monthly report from August, Mixin Network has approximately 1 million users.

Mixin Network’s cloud service provider’s database was attacked on Saturday, September 23. SlowMist, a blockchain security firm, was one of the first to break the news. It announced on X that its team is currently assisting in the investigation into the attack and asked everyone to wait for updates from Mixin.

The Mixin Network Response

Mixin released an official announcement on X just over 20 minutes later. They announced that they had contacted Google, who would join SlowMist in the investigation.

The announcement read, “After initial verification, the funds involved are approximately US$200 million. Deposit and withdrawal services on Mixin Network have been temporarily suspended.”

The team stated that they had discussed and reached a consensus on all Nodes to reopen deposits and withdrawals after all vulnerabilities have been found and fixed. However, transfers will not be affected during this period.

The Mixin team has assured its users that they will announce a solution addressing the lost assets soon. The announcement read, “Mixin founder Feng Xiaodong will explain this incident in a public Mandarin livestream at 13:00 HKT on September 25, 2023. Please help spread the word.” Mixin also promised to summarize the content of the livestream in English afterward and do their best to minimize losses from this incident.

Following the news of the attack, Mixin Network’s native cryptocurrency, XIN, faced significant selling pressure. Right now, XIN is trading at $192.77, down 8.55% in the last 24 hours.

According to data from CoinMarketCap, the drop began around the time SlowMist put out their statement. XIN’s fall slowed down around 4:25 AM but continued the downward spiral from around 6:15 AM.

Despite security measures, the cryptocurrency market continues to witness a surge in fraud and attacks. A top Terra Classic project was hacked in April with 15.1 billion LUNC stolen. The Exactly Protocol also experienced a security breach in August, resulting in the theft of $7.2 million in ETH.

The Mixin Network hack is another sign that crypto exchanges and Networks need to stay on their toes and increase their security.

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